Powered By

Breaking News

Global food prices rise 10% in July mostly affecting the Middle East and Africa

Publish Date31/08/2012 01:27:55 PM

Last Update31/08/2012 01:30:46 PM

Global food prices rise 10% in July mostly affecting the Middle East and Africa

The World Bank has warned on Thursday that global food prices rose 10% in July from the month before, driven by the severe U.S. heatwave and the drought in parts of Eastern Europe were mostly to blame for the rising costs.

The Washington-based organization also added that maize and wheat prices rose by 25% from June to July, and soybeans rose by 17%, driving the World Bank`s Food Price Index that measures the price of traded food commodities 6% higher than July 2011.

The severe U.S. drought determined many farmers to abandon their 2012 harvest as more than half of the country`s corn crop was destroyed; and since the U.S. is the world`s largest exporter of corn and soybeans, food prices went sharply higher.

Corn futures jumped about 60% since the drought started in late June, and now they are trading above $8 a bushel, mainly as 40% of the U.S. corn production is used to produce ethanol biofuel becoming a key factor in the sharp rise in the US maize price.

The bank also warned that North and Sub-Saharan Africa and the Middle East will be particularly vulnerable to such price increases because much of their food was imported; yet the bank does not predict riots as in 2008.

Thereby the organization is urging governments to bolster programs to protect their vulnerable population, said World Bank President Jim Yong Kim.


Member Account Required
You must be registered as a member of the forums and logged into your account to post messages. If you do not have a member account, please Sign In or Register.
United States
Asia Pacific
Economic Calendar
Holiday Calendar
ECB Calendar
Feds Calendar
BoE Calendar
Boj Calendar
Top News
FX Updates
Market News
Global Highlights
Political News
Around the World
At A Glance & Video Commentaries
Market Pulse
Press Releases
About Us
Contact Us
Privacy Policy
Terms of Services

Risk Disclaimer : All information on this page is subject to change. The use of this website constitutes acceptance of our Privacy Policy and Terms of Service. Please read our Privacy Policy, Risk Disclaimer, Terms of Services and all legal disclaimers. Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone.

Opinions expressed at ICN.com are those of the individual authors and do not necessarily represent the opinion of ICN.com or its management, shareholders, affiliates and subsidiaries. ICN.com has not verified the accuracy of any claim or statement made by any independent writer and is reserved as their own and ICN.com is not accountable for their input. Any opinions, news, research, analysis, prices or other information contained on this website, by ICN.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. ICN.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The data contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market prices, meaning prices are indicative and not appropriate for trading purposes. ICN.com does not bear any responsibility for any trading losses you might incur as a result of using this data.